September 14, 2023
Research from entertainment technologist TiVo for IBC 2023 reveals that almost half of all UK consumers have not reduced their video spending as a result of increases in the cost of living. On average, UK consumers subscribe to six paid video content sources, with an average monthly bill of GBP 78.06 (EUR 90.71).
However, while having access to multiple content sources, the inaugural TiVo Video Trends Report: UK found UK consumers report considerable frustration with discovering new and interesting video content, with only one in 10 (11 %) strongly liking recommendations they receive from any source.
Of the respondents who pay for video content, 81 % have a subscription to video on demand (SVoD) services such as Netflix and 57 % subscribe to pay TV services (e.g., Sky, Virgin Media), but there is a considerable churn risk for both. Two in five (21 %) respondents said they stopped their SVoD subscription within the last six months.
The report also reveals the world of Advertising-Based Video on Demand (AVoD)/Free Ad-Supported Streaming TV (FAST), such as Pluto TV and Freevee, is still in early stages of its path forward, with only 42 % of UK consumers watching AVoD or FAST channels. Further uptake looks promising, however, as 76 % of UK consumers say they are ad-tolerant if it means not paying for content.
“It’s clear that UK consumers are willing to both pay for content and watch ads to access the entertainment they want, but they have considerable frustration with discovering new and interesting video content in this ever-saturated market,” said Gabriel Cosgrave, general manager of EMEA at TiVo parent company Xperi. “It’s time for TV manufacturers to invest in creating personalised content experiences across devices that provide dynamic, highly relevant recommendations based on preferences and behaviours to give stand-out experiences and minimise churn.”
- UK consumers prefer to binge: More than half (52 %) prefer a whole season of a TV show to be available at once so they can binge it, compared to 21 % who prefer episodes to be released one per week
- Social content reigns: The majority (81 %) watches social video (e.g., YouTube, TikTok), with 26 % watching it on a TV several times a week
- Smart TV ownership is very encouraging: Nearly three-quarters (74 %) own a smart TV and 15 % plan to make a purchase in the next six months (58 % replacing a TV and 42 % to add to another room or location)
- Trust in voice control needs to improve: Top reasons for not using voice control are: not being comfortable talking into a device (32 %); not recognising what they said (28 %); and it’s faster to browse the menus (23 %).